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Industrial production of propylene oxide starts from propylene. Two general approaches are employed, one involving hydrochlorination and the other involving oxidation.[5] In 2005, about half of the world production was through chlorohydrin technology and one half via oxidation routes. The latter approach is growing in importance.[6]

Cumene hydroperoxide derived from oxygenation of cumene (isopropylbenzene),, which affords cumyl alcohol. Via dehydration and hydrogenation this coproduct can be recycled back to cumene. This technology was commercialized by Sumitomo Chemical.[7]

Propylene oxide was once used as a racing fuel, but that usage is now prohibited under the US NHRA rules for safety reasons. It has also been used in glow fuel for model aircraft and surface vehicles, typically combined in small percentages of around 2% as an additive to the typical methanol, nitromethane, and oil mix. It is also used in thermobaric weapons, and microbialfumigation.

The United States Food and Drug Administration has approved the use of propylene oxide to pasteurize raw almonds beginning on September 1, 2007, in response to two incidents of contamination by Salmonella in commercial orchards, one incident occurring in Canada and one in the United States.[12][13] Pistachio nuts can also be subjected to propylene oxide to control Salmonella.

Propylene oxide is commonly used in the preparation of biological samples for electron microscopy, to remove residual ethanol previously used for dehydration. In a typical procedure, the sample is first immersed in a mixture of equal volumes of ethanol and propylene oxide for 5 minutes, and then four times in pure oxide, 10 minutes each.

In 2016 it was reported that propylene oxide was detected in Sagittarius B2, a cloud of gas in the Milky Way weighing three million solar masses. It is the first chiral molecule to be detected in space.[16]